§ 57. Sir Waldron Smithersasked the Chancellor of the Exchequer whether in view of the fact that Income Tax and Profits Tax are not chargeable on profits which accrue to the State, was the payment of £86,016 Import Duty paid into the Exchequer under a contract for Polish geese made in May, 1949.
§ Mr. GaitskellChiefly because Import Duty is a cost which should be borne by a Government Department no less than by private importers and is not a profit which accrues in any event to the Exchequer.
§ Sir W. SmithersIs the Chancellor aware that the other day he told me that profits made by the Ministry of Food were not chargeable to Income Tax? In that case, why is this amount chargeable? Is he also aware that if the nationalised industries can trade without paying Income Tax it is very unfair on private traders?
§ Mr. GaitskellThis Question is about Import Duty and the answer is that Import Duty should be paid by Government Departments so as not to be unfair to private traders.